Executive Summary

Q1 2025 delivered lower operating loss and YoY improvement in net loss driven by reduced R&D and a favorable non-cash revaluation of the convertible loan; grant/award revenue was $0.49M, operating loss $(8.19)M, and net loss $(6.53)M, or $(0.18) basic / $(0.20) diluted EPS .
Balance sheet: cash and cash equivalents were $11.69M vs $9.29M at 12/31/24; term debt current increased to $75.09M, and the convertible loan moved to current ($27.69M), reflecting near-term maturities; stockholders’ deficit widened to $(53.78)M .
Clinical execution remained the core narrative: AP-SA02 diSArm topline narrowed to “Q2 2025” from “H1 2025” in the CEO’s remarks, and DoD added $4.65M non-dilutive funding; a $10M Innoviva secured credit was also executed and maturities extended to 3/12/26 .
Post-quarter catalyst: Armata announced positive diSArm topline on May 19—AP-SA02 significantly improved clinical outcomes vs antibiotics alone with no treatment-related SAEs, supporting rapid progression to a pivotal trial; this is the key stock driver near term .

What Went Well and What Went Wrong

What Went Well
- Positive clinical momentum: “we completed our third Phase 2 study… AP-SA02… Topline data is anticipated in the second quarter of 2025” (CEO) .
- Additional non-dilutive funding: +$4.65M DoD award increment to support diSArm close-out and end-of-Phase 2 preparations .
- Financing runway actions: $10M secured credit with Innoviva and maturity extensions to 3/12/26 across Innoviva credit/convertible agreements .
What Went Wrong
- Revenue remains grant-based and declined YoY to $0.49M (vs $0.97M); product revenue is still absent; operating activities consumed $(7.58)M in cash for the quarter .
- Leverage and near-term liabilities rose: current term debt to $75.09M and convertible loan reclassified to current at $27.69M; stockholders’ deficit widened to $(53.78)M .
- Going concern flag in 2024 10-K noted in May 1 update, underscoring financing risk pending pivotal trials .

Financial Results

Sequential and multi-quarter comparison (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Grant and award revenue ($USD Millions)	$2.973	$1.235	$0.491
Research & development expense ($USD Millions)	$9.485	$8.450	$5.429
General & administrative expense ($USD Millions)	$3.244	$3.323	$3.253
Total operating expenses ($USD Millions)	$12.729	$11.773	$8.682
Operating loss ($USD Millions)	$(9.756)	$(10.538)	$(8.191)
Net income (loss) ($USD Millions)	$(5.481)	$2.600	$(6.531)
EPS (basic) ($)	$(0.15)	$0.07	$(0.18)
EPS (diluted) ($)	$(0.15)	$(0.23)	$(0.20)
Cash & cash equivalents ($USD Millions)	$17.141	$9.291	$11.688

YoY comparison (Q1 2025 vs Q1 2024)

Metric	Q1 2024	Q1 2025
Grant and award revenue ($USD Millions)	$0.966	$0.491
Research & development expense ($USD Millions)	$8.016	$5.429
General & administrative expense ($USD Millions)	$3.178	$3.253
Operating loss ($USD Millions)	$(10.228)	$(8.191)
Net loss ($USD Millions)	$(25.021)	$(6.531)
EPS (basic) ($)	$(0.69)	$(0.18)
EPS (diluted) ($)	$(0.69)	$(0.20)

Notes and drivers:

YoY net loss improvement largely reflects a $5.20M non-cash gain from change in fair value of the convertible loan in Q1 2025 versus a $(13.03)M non-cash loss in Q1 2024, alongside lower R&D spending .
Sequential cash rose on $10M term debt proceeds; operating cash burn was $(7.58)M in Q1 .

Segment breakdown: Not applicable (no commercial segments disclosed) .

KPIs (operational/financial)

Net cash used in operating activities (Q1): $(7.58)M
Shares outstanding (as of May 8, 2025): ~36.2M
Current liabilities (3/31/25): $110.54M; Stockholders’ deficit: $(53.78)M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AP-SA02 diSArm topline timing	2025	“First half 2025” (Q4 release)	CEO narrowed to “Second quarter 2025” (Q1 remarks)	Narrowed/clarified
AP-SA02 next steps	2025	Plan to discuss pivotal strategy with FDA in 2025	End-of-Phase 2 meeting prep funded; path to Phase 3/registration emphasized	Maintained, with added funding detail
AP-PA02 bronchiectasis pivotal intent	2025	Working to initiate pivotal in 2025	Pivotal intent reiterated; focus remains on positioning for pivotal	Maintained
Innoviva financing/maturity	2025–2026	Amended maturities to 1/10/26 (prior)	$10M new secured term loan (14%); maturities extended to 3/12/26	Extended maturities, added liquidity
DoD MTEC funding (AP-SA02)	2025	Award ongoing (prior DoD support)	+$4.65M increment for close-out and EOP2 meeting prep	Increased non-dilutive funding

No financial guidance (revenue/margins/OpEx/tax/dividends) was provided in Q1 materials -.

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q1 2025; themes below aggregate across recent disclosures (Q3 2024, Q4 2024, Q1 2025) [ListDocuments: no transcripts].

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AP-PA02 efficacy and pivotal path	Completed Tailwind enrollment; plan for 2025 pivotal initiation	Encouraging Tailwind topline; positioning to design pivotal	Continued focus on designing pivotal for NCFB P. aeruginosa	Steady progress; pivotal path forming
AP-SA02 diSArm completion and topline	Completed enrollment; topline expected Q1 2025	Completed enrollment; topline in H1 2025	Study completed; CEO narrows to Q2 2025; +$4.65M DoD support	Milestone imminent; timing refined
Manufacturing (cGMP capacity)	In-house cGMP highlighted	cGMP capabilities reiterated	Capacity emphasized; ability to support commercialization	Consistent strategic asset
Funding/liquidity actions	Extended debt maturities to 1/10/26	Planning $10M debt (announced Mar 12)	$10M secured credit; maturities to 3/12/26; added DoD funds	Strengthening liquidity via debt and grants
Regulatory path	Align FDA design for pivotal (AP-PA02)	Plan to meet FDA on AP-SA02 pivotal strategy	End-of-Phase 2 prep funded for AP-SA02	Increasing regulatory engagement

Management Commentary

“During the first quarter of 2025, we completed our third Phase 2 study… Topline data is anticipated in the second quarter of 2025… additional award funding from the DoD… to align on an efficient path toward Phase 3 and registration.” — Dr. Deborah Birx, CEO .
“We believe the learnings gained from the two completed Phase 2 studies position Armata to design a pivotal trial to evaluate AP-PA02 as an alternative to antibiotics…” — Dr. Deborah Birx, CEO (Q4) .
On May 19 topline: “This trial and these data are what the field of phage therapy has been eagerly awaiting… first clear evidence in a randomized controlled trial of the efficacy of phage against a serious systemic pathogen…” — Dr. Deborah Birx, CEO .

Q&A Highlights

No Q1 2025 earnings call transcript or Q&A was available in the document set searched. The analysis above reflects management’s prepared remarks and press releases [ListDocuments: no earnings-call-transcript; 2025-01-01 to 2025-06-30].

Estimates Context

Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable; there were no data points returned, suggesting limited or no analyst coverage at the period level. Values retrieved from S&P Global.*
Without consensus, we cannot characterize beats/misses vs estimates for revenue or EPS this quarter.

Key Takeaways for Investors

Near-term binary turned positive: post-quarter diSArm topline showed significant clinical benefit and clean safety, a pivotal stock catalyst that strengthens the path to a pivotal SAB efficacy trial .
Operating discipline: R&D moderated to $5.43M (from $8.02M YoY), reducing operating loss to $(8.19)M; non-cash convertible loan revaluation aided YoY net loss improvement .
Financing risk remains material: current term debt and convertible loan reclassification increased near-term obligations; going concern disclosure underscores the need for continued funding pending pivotal execution .
Liquidity actions ongoing: $10M Innoviva credit and +$4.65M DoD award enhance near-term runway and fund regulatory interactions (EOP2) .
Manufacturing is a strategic differentiator: in-house cGMP capacity supports rapid clinical-to-commercial scale-up, a competitive asset if AP-SA02/AP-PA02 advance .
Medium-term focus: FDA alignment for AP-SA02 pivotal design and AP-PA02 bronchiectasis pivotal planning—regulatory clarity and financing cadence will be key drivers of sentiment .

References

Q1 2025 8-K and Exhibit 99.1: financials, liquidity, and CEO commentary .
Q1 press release (duplicative financials/quotes) -.
Additional relevant press releases: DoD award increment (May 1) -; Innoviva $10M credit (Mar 12) -; CEO presentation notice (Mar 11) ; diSArm positive topline (May 19) -.
Prior quarters for trend: Q3 2024 8-K Exhibit 99.1 -; Q4 2024 8-K Exhibit 99.1 -.

Armata Pharmaceuticals, Inc. (ARMP)·Q1 2025 Earnings Summary